Minutes - Charter Commission - 08/27/2020

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Finance Director Lund stated that the City does not have a restriction on the levy, although it does have a restriction on the amount of debt that can be carried. She commented that if the restriction is placed in the manner discussed, it would be minimal such as plowing and mowing grass. She stated that the ordinance in place states that franchise fees would be limited to use for road improvements and it has been determined that $1,900,000 is needed annually for that purpose. She explained that if the language proposed by the Charter Commission were in place, the franchise fee revenue would not cover that expense. She stated that the Council is currently continuing budget discussions and would like to limit the levy increase to five percent. She explained that if the $1,900,000 in road funding were added to the levy that would result in an increase of 16 percent, without considering daily operations and the current City debt. Chairperson Field asked about the expert that the City hired the previous year to conduct public meetings. City Administrator Ulrich stated that the City contracted with WSB. Chairperson Field asked if WSB met with the RCP group. City Administrator Ulrich noted that RCP reviewed some of those materials but did not believe that they met directly with WSB. Commissioner Leistico commented that State law allows cities to utilize franchise fees for this purpose and asked if the State places any limits or restrictions on the use. City Attorney Langel stated that restriction is not placed by the State. He noted that a time limit and other restrictions were placed on the use within the City's ordinance. He stated that the franchises being used for this purpose are gas and electric and not cable. Chairperson Field asked about the next step if the Charter Commission adopted the motion on the table. City Attorney Langel stated that if the Charter Commission proposes an amendment to the Charter, it must be submitted 17 weeks before the general election in order to be placed on the ballot. He noted that because of the timing, it would then go forward under a special election and believed the earliest consideration would then be February. Commissioner Bendtsen stated that he has a number of objections to the use of franchise fees to raise road funds, noting that it is very regressive. He noted that many people will pay more in franchise fees than they would be charged through property taxes. He also did not believe that it is fair when some people do not have vehicles and others have four vehicles, yet they would be charged the same. He stated that people are afraid to commit to funding the road improvements. He noted that assessments are only 25 percent while the taxpayers fund the remaining 75 percent of that cost. Charter Commission/ August 27, 2020 Page 6 of 11